A year after Telesis Community Credit Union filed a breach of contract claim against an Orlando shopping center, the owners of the property have filed a Chapter 11 bankruptcy petition.
International Shoppes LLC filed the petition Oct. 21, indicating that the property, located near the Universal Studios theme park, is worth $4.6 million, according to the case filed in the U.S. Bankruptcy Court, Middle District Florida in Orlando. The $416 million Telesis in Chatsworth, Calif., is owed $11 million, the case noted.
"The Florida property borrower filed bankruptcy as one step toward preparing a plan of reorganization, as allowable by law," Loren Houchen, chief operating officer of Business Partners LLC, told Credit Union Times in a Nov. 3 statement. "We are taking appropriate steps to preserve the rights of the lender group that is comprised of Telesis Community Credit Union and other credit union participants."
Telesis is the majority owner of business lending CUSO Business Partners. Houchen said, "We are unable to provide more specifics due to the sensitive ongoing nature of such loan resolution activities, as we want to maximize the likelihood of successful results." He also said the CU and CUSO wants to maintain client confidentiality and preserve the rights of parties during collection actions.
Telesis and Business Partners filed a breach of contract claim against International Shoppes and Abdul Mathin in November 2009. At the time, the loans were placed in a receivership process. The CU said it was not likely to be acquired through foreclosure because the borrower was actively working on a resolution. The Florida retail property has 13 credit union participants, including Telesis, the lead lender.
Since at least last year, Telesis had also been working to settle a $6.8 million Oregon property loan for an office building. The case was placed in bankruptcy court. Houchen said the borrower has proposed a plan of reorganization and that process is nearing its conclusion.
"The guarantor on that loan also successfully navigated the bankruptcy process for another commercial real estate loan that provided favorable results for all parties without a loss to the lender group," Houchen said.
In another property dealing, Tennessee properties involving Telesis were discharged from bankruptcy and "were returned to normal loan status after a detailed process that provided favorable results with no loss for all parties," Houchen said.
"The above summaries demonstrate that lenders and servicers have numerous tools at their disposal to resolve loan delinquencies," he added.